Appleton Papers once more ups payment in consent solicitation for 8 1/8%, 9¾% notes

By Jennifer Chiou

New York, June 12 - Appleton Papers Inc. announced it again increased the payout in the consent solicitation for its 8 1/8% senior notes due 2011 and 9¾% senior subordinated notes due 2014.

Noteholders who consent will now receive $25.00, up from the previous $17.50 and the earlier $10.00 per $1,000 principal amount of notes.

On June 6, the company amended the solicitation to add a $45 million cap for the amount parent Paperweight Development Corp. may pay during any four consecutive fiscal quarters to satisfy stock repurchase obligations.

As previously announced, other proposed amendments will allow Appleton to make distributions to parent company Paperweight Development, will allow Paperweight to make certain payments that are required by Appleton's employee stock ownership plan and will make other related changes to the restricted payments covenant and the definitions in the each of the indentures.

The consent solicitation will expire at 11:59 p.m. ET on June 12, previously extended from June 9. It began on May 26.

The proposed amendments to each indenture require the consent from holders of at least a majority of each series of notes.

Global Bondholders Services Corp. is the information agent (call collect 212 430-3774 or 866 952-2200). UBS Securities LLC (call collect 203 719-4210 or 888 722-9555, ext. 4210).

Appleton is an Appleton, Wis., paper company.

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